If it is your first time selling your home, you might think that your sale will work out when you get your first offer. However, getting an offer doesn’t always mean that your home sale will work out with that specific buyer.
Here are a few reasons why a home sale isn’t done when you get an offer.
Financing Can Fall Through
One reason why your home sale might not be complete when you get an offer is that financing can fall through. When you’re selling your house on the traditional housing market, most of your buyers won’t have the money to pay for your house in cash. They’ll be homeowners like you, and they’ll likely need to take out a loan to pay for your house.
Unfortunately, getting approval for a mortgage or loan isn’t always as easy as you might think. Depending on their credit score, loan history, and finances, your buyer might not get approved for their financing. They also might not get a rate that they can afford. Either of these circumstances could cause them to back out of your deal even after they’ve given you an offer.
Buyers Can Change Their Minds
Another reason why your home sale might not work out after getting an offer is that buyers can change their minds quite easily. At a moment’s notice, your buyer could decide that your house no longer meets their desires and expectations for their future home.
They could also decide that they want to live in a different location or need a different size of home to meet their family’s needs. Once a buyer gives you an offer, they aren’t obligated to follow through with it. You should always be wary of the possibility that buyers might back out of the sale.
Contingency Requirements Can Be Difficult to Meet
Your home sale also might be canceled when your buyer’s contingency requirements are difficult to meet. A contingency is a clause in an offer/home buying agreement that allows the potential buyer to back out of the deal if their requests aren’t met. When you receive an offer from a potential buyer, they might include some contingency requirements that could make it difficult to sell your house. For example, they could have a lot of repair and renovation demands that could significantly slow down your house sale and cost you a lot of money. When you see there are a lot of contingencies connected to an offer, keep in mind your ability to work with the particular buyer before accepting their offer.
So, if you’re preparing to sell your home shortly, remember these reasons why your home sale isn’t done when you get an offer. Your buyer’s financing can fall through, buyers can change their minds, and contingency requirements can be difficult to meet. Make sure you’re patient and intentional as you’re finding the right buyer for your home.
Did you enjoy reading this article? Here’s more to read. Types of Home Buyers and How They’re Different